QUESTION: Dear Mr. Armstrong,
You write that you apologize that you can only provide 400 seats to
this years’ World Economics Forum in Berlin. Why don’t you offer the
possibilty to take part via an Internet Conference? So a lot more people
could join your conference!
Best regards,
ASANSWER:
Doing a two day live broadcast is not really doable. What became clear
was that we have many new people joining and people who have been there
many times. The solution will be to separate sessions for beginners and
veterans.
Additionally, the introduction that is required for some is old hat
to others. So the intro can be done from a conference that is broadcast.
We may be able to do a broadcast of a special forecast session as well.
These live events are also networking, They are mini-UNs where people
come together. We have over 30 countries in the Berlin audience. People
flew in from Japan, China, Singapore, Australia, New Zealand,
Indonesia, Hong Kong, Thailand, and that was just from Asia. Clients
from South America and Africa attended as well as USA and Europe at the
Berlin WEC. You get to meet people around the world of a like mindset.
Moving forward, we will have a veteran session of just forecasts
assuming you had to attend an introductory session. It is very hard to
do just forecasting without background for you lose some and bore
others. They must be split.
Those who attend get the written reports as part of the price. We
will be sending out Real Estate, World Share Markets, the Dollar in
addition to the Year-End Report that was sent out as well. So the ticket
price includes more than $1,000 of reports.

The Australian Government is introducing legislation that converts itself into a virtual dictatorship
whereby it has sweeping powers to order any communication company to
simply do whatever they command. The claim the powers are as always for
national security to prevent spies and criminals from accessing
communications. This is akin to government saying they want to outlaw
murder so the way to prevent murder is to simply just kill anyone they
“think” someone would murder. You cannot prevent spies and criminals by
doing the same thing yourself. How did we ever exist as a society if the
government didn’t read every single piece of mail involving everyone in
the world before emails?
Ever since the 2015.75 turning point in government on the ECM, we
have seen a new directive – take everything. Britain we see the same
action as well as in France. The drive towards non-democratic forms of
government is underway.

It took the Russians too long to defend themselves from Washington’s Fifth Column NGOs, but finally they understood that these US-financed operatives were a dagger at Russia’s heart.Russian prosecutors have banned them.

No one will give me credit for this, so I will claim it for myself. I
wrote many columns about the Russian government’s insouciant toleration
of Washington’s Fifth Columns operating against them. And some of
these Fifth Columns are still present in the Russian media and in the
neoliberal central bank.

One day, perhaps, the Russian government will come to its full senses.

The week after the double murder at IKEA
in Västerås, where a man from Eritrea who had been denied asylum
grabbed some knives and stabbed Carola and Emil Herlin to death, letters
and emails poured into the offices of Swedish Prime Minister (PM)
Stefan Löfven. Angry, despondent and desperate Swedes have pled with the
Social Democratic PM to stop filling the country with criminal migrants
from the Third World or, they write, there is a serious risk of hatred
running rampant in Sweden. One woman suggested that because the Swedish
media will not address these issues, Löfven should start reading foreign
newspapers, and wake up to the fact that Sweden is sinking fast.

According to the Electronic Frontier Foundation, around 300,000 NSLs
have been issued since 2001. By 2008, the Justice Department concluded
that the FBI had been abusing its powers with NSLs, even after changing
policies in 2006.

Exactly a year ago, Riyadh decided to embark on an epic quest to send
crude prices plunging on the way to, i) bankrupting the US shale
complex and ii) achieving “ancillary diplomatic benefits,” like tightening the screws on Moscow’s energy-dependent economy in hopes of forcing Putin to give up Assad.

Late last year, Japanese PM Shinzo Abe
effectively forced the $1.1 trillion Government Pension Investment Fund
to double its domestic equity allocation. With Kuroda providing
perpetual Nikkei plunge protection, and with Abenomics set to bring
about an economic renaissance, what could possibly go wrong?...

Sunday, November 29, 2015

A controversial government surveillance program has come to an end. As
of midnight, the United States National Security Agency has stopped the
bulk collection of the metadata from Americans' phone calls.

It's worth noting that today marks the end of one of the most
controversial parts of U.S. surveillance but other parts remain
untouched.

For example, the PRISM program, which was also
revealed by the Snowden documents and collects a vast amount of Internet
data, continues to operate. The program has not been as controversial
here in the U.S., because it does not directly target Americans, but as
we've learned through the Snowden leaks, some content from Americans'
communication gets caught in the dragnet.

COMMENT: You
forecasted a world war.‎ What my generation only looks back at through a
historical looking glass in an attempt to isolate the starting events
of the last great war you have called into focus in real time as events
unfold in the current great war. In advance of events unfolding. This
experience is unsettling, but real.

Best regards,MM

REPLY: It is unsettling. ISIS has issued a letter taking credit for the attacks, stating, “That’s just the beginning of a storm.”
I have tried to put everything together to understand how the world
ticks. War comes only when the economy turns down; outside the USA, the
peak was 2000 or 2007 depending on the country.
The siege of Paris is a very profound event. Had the terrorists
attacked a military target, an international war would be less likely.
Attacking the people like this stirs the sentiment against the Islamic
organization and will create war.Watch Roosevelt’s Speech on October 30, 1940
FDR promised that American troops would not be sent overseas to fight any foreign war. Now, you have Hillary claiming that this is not America’s war. America entered World War II only after the Pear Harbor attack. Attack the people and WAR will ALWAYS
follow. That is just a simple fact of correlation, and not a personal
forecast or opinion. All I can do is hope to reveal the interconnections
and perhaps others in the future will learn from the mistakes.

COMMENT:
Mr Armstrong; I am a reformed goldbug who was naive to put it mildly
but my wife called it stupidity. You have been correct and they have
been wrong but that is just the surface. What you have opened my eyes to
is the cyclical nature of everything around us. Not just markets, you
have revealed your works applies across the spectrum from gold, stocks,
politics, to war.
Thank you for the education. It has saved my marriage and my family’s
future. I believe these people are evil who lure the unsuspecting with
delusional promises that never prove to be reliable.
SYREPLY:
Cycles are how energy moves. This is the divine mechanism that dictates
everything from the planets revolving around the sun to our solar
system revolving around the universe once every 25,800 years — the Precession of the Equinoxes. Only a fool refuses to comprehend the world around him.
President Franois Hollande was the first to speak of an “act of war”
against France to justify calling for a state of emergency and to
strengthen border controls. Yesterday, numerous heads of state at the
G20 summit saw a solidarity as the German President Joachim Gauck also
spoke of a war. The dogs of war were unleashed with this siege of Paris.
The danger now is that the uneducated Christians will begin to clash
with Muslims without understanding the difference between them and ISIS.
And yes — they really did use dogs in war. Archaeologists believe
that humans have been using dogs in warfare since the animals were first
domesticated more than 15,000 years ago. The first actual written
record of using dogs in war dates back to Lydia in modern day Turkey,
where coins were invented. The first ruler, Alyattes, reportedly had his
soldiers turn packs of dogs loose on Cimmerian troops in a battle
sometime around 600 BC, which was very effective against cavalry
according to contemporary sources.

France is using the terror attack as the excuse now to shut down pre-paid debt cards.
Terrorists can circumvent any restriction. It is like gun control.
Criminal do not buy guns at a store. Like drugs, they are readily
available on the streets. Regulations only impact honest people just
like debt cads or whatever. I sent a Xmas give to a friend in Germany
last year and they thanked me but added please do not send me anything
else. They have to go to customs, wait in in line, and then pay a tax to
receive just a gift.

We are sorry that we could not add more seats or hold additional
sessions. Princeton was above our preferred size reaching 600 and Berlin
we are sold out at 400. We just could not accommodate more clients. We
apologize for being unable to hold more sessions.

Sandy Hook – Book BANNED

The film exposed the plot to disarm Americans via the fake “biggest
school shooting in US history.” But immediately, the Regime began
deleting this Documentary
off YouTube – and terminating YouTube channels that reposted it. If the
Documentary was “nonsense,” why was the Regime attacking everyone that
shared it?

We covered censorship of the Sandy Hook Documentary here (VIDEO) and here. For the moment, you can watch the Documentary on YouTube:

But scrubbing that Documentary (late 2014) was just the first step.
Now (late 2015), the Regime has resorted to banning books. This new
Sandy Hook BOOK provides 400 pages of evidence that Sandy Hook was a
pre-scripted hoax to take your guns:

Saturday, November 28, 2015

Zero Hedge reports a story from “Keep Talking Greece” that first appeared in The Times http://www.thetimes.co.uk/tto/news/world/europe/article4624755.ece According to the story, the plummeting living standards forced on the
Greek people by German chancellor Merkel and the European banks have
forced large numbers of young Greek women into prostitution. The large
increase in the supply of women offering sexual services has dropped
the price to 4 euros an hour. That’s $4.24, enough for a cheese pie or a
sandwich, the value that bankster-imposed austerity has placed on an
hour’s use of a woman’s body. The half hour price is $2.12. They don’t
even get the minimum wage.

I wrote the first three parts of this article back in September and
planned to finish it in early October, but life intervened and
truthfully I don’t think I was ready to confront how bad things will
likely get as this Fourth Turning moves into the violent, chaotic war
stage just over the horizon. The developments in the Middle East,
Europe, U.S., China and across the globe in the last months have
confirmed my belief war drums are beating louder, global war beckons,
and much bloodshed will be the result. Fourth Turnings proceed at their
own pace within the 20 to 25 year crisis framework, but there is one
guarantee – they never de-intensify as they progress. Just as Winter
gets colder, stormier and more bitter as you proceed from December
through February, Fourth Turnings get nastier, grimmer, more perilous,
with our way of life hanging in the balance.

In Part 1 of this article I discussed the catalyst spark which ignited this Fourth Turning and the seemingly delayed regeneracy.

In Part 2 I pondered possible Grey Champion prophet generation leaders who could arise during the regeneracy.

In Part 3
I focused on the economic channel of distress which is likely to be the
primary driving force in the next phase of this Crisis.

In Part 4 I
will assess the social and cultural channels of distress dividing the
nation,

Part 5 the technological, ecological, political, military
channels of distress likely to burst forth with the molten ingredients
of this Fourth Turning, and finally

in Part 6 our rendezvous with destiny, with potential climaxes to this Winter of our discontent.

The road ahead will be distressful for everyone living in the U.S.,
as we experience the horrors of war, economic collapse, civil chaos,
political upheaval, and the tearing of society’s social fabric. The pain
and suffering being experienced across the globe today will not bypass
the people of the United States. Winter has arrived and lethal storms
are gathering in the distance. Don’t think you can escape. You can
prepare, but this Crisis will reshape our society for better or worse,
and you cannot sidestep the consequences or cruel environment we must
survive.

“Reflect on what happens when a terrible winter blizzard strikes.
You hear the weather warning but probably fail to act on it. The sky
darkens. Then the storm hits with full fury, and the air is a howling
whiteness. One by one, your links to the machine age break down.
Electricity flickers out, cutting off the TV. Batteries fade, cutting
off the radio. Phones go dead. Roads become impossible, and cars get
stuck. Food supplies dwindle. Day to day vestiges of modern civilization
– bank machines, mutual funds, mass retailers, computers, satellites,
airplanes, governments – all recede into irrelevance. Picture yourself
and your loved ones in the midst of a howling blizzard that lasts
several years. Think about what you would need, who could help you, and
why your fate might matter to anybody other than yourself. That is how
to plan for a saecular winter. Don’t think you can escape the Fourth
Turning. History warns that a Crisis will reshape the basic social and
economic environment that you now take for granted.” –

I will keep reminding you that nothing free is ever actually freebut what's worse is that the data collected, once collected, is never deleted and that while there are plenty of "benign" or even helpful things that someone can do with data they collect on you, there are also very malignant things that can be done too.

There is something that everyone needs to understand about companies like Facebook and similar that claim large "revenue per user" figures: Someone is paying them that money.

If you're wondering how you get bled to almost-literally nothing in
this world today, that's one way it happens. You're tricked into
believing that something like Facebook is "free", while the company discloses that you are "worth" $42 a year to them in direct revenue that someone else forks up and then must multiply by a factor of 10 or more in order for their investment to be worth it. That money all comes out of your pocket whether you recognize it or not, and it happens simply because you use Facebook and thus give those firms the ability to buy the data that they then use against you to extract that $420!

Start thinking of your "relationship" with these businesses in this way and you might wake up a bit.

You might also decide that this isn't such a good deal, especially if that $420 means something to you.

“We had arguments which might
persuade both the Germans – who would be worried about the weakening of
anti-inflation policies – and the poorer countries – who must be told
that they would not be bailed out of the consequences of a single
currency, which would therefore devastate their inefficient economies.”

QUESTION: As a long time follower since 1980 you always stressed time was more important than price.

Your benchmark time points stress time yet you still picked price can you explain?

—
NIANSWER:
Yes, we give projections for the ideal targets, but they are broad in
one way and when geared with time they can be more reliable. But as in
the Dow, there were three 18500, 23000 and 40,000. If this was the end
of a bull cycle, then the 18500 would be sufficient. However, we still
have time so that means we should look at the next target.Technical projections will be provided at the specific time target. TIME is the main issue ALWAYS. There is a TIME for everything. When we reach the Benchmarks, it will not matter if the low in gold will be $902, $875, or $680.
When TIME runs out that is it. That is always the key issue. PRICE is secondary.

COMMENT:
Marty In your report on diseases you had mentioned that Ebola will
initially fade but be back in full force in 2016 going into 2020 with
devastating results. Looks like you are right again. Please see report
from CNN about Ebola coming back to Liberia. http://www.cnn.com/2015/11/21/africa/liberia-ebola-return/index.html Would Ebola be restricted to Africa or are we going to see worldwide outbreak this time.
Thanks
SJREPLY:
It is amazing to me how outside of physics, the world remains ignorant
of cycles which control absolutely everything right down to the cycle of
life. Ebola
like everything else conforms to cycles. It will not stay confined to
Africa. The importation of refugees into Europe will also provide a
carrier for disease. Politicians are totally ignorant of life in
general. It was Gaëtan Dugas (February 20, 1953 – March 30, 1984)
who was a Canadian employee flight attendant of Air Canada who brough
AIDS from Africa to North America. It was the Centers for Disease
Control and Prevention who traced it all back to this one individual
they called “patient zero”. Despite the fact this has been disputed, the
point is that someone, if not Dugas, crossed borders transporting the
disease with them.
Another tremendous risk is criminal prosecutions in the USA. Anyone
charged with a crime takes precedent over anything else. There is no
question that with all the cross-border connections taking place right
now, it is impossible to contain any diseaase to one area.

The spotlight was firmly on China today where the equity tumbled over
6%. News that market regulators are investigating suspected violation
by some of the countries brokerages finance their clients stock
purchases. Citic fell to its daily limit (-10%) before closing. Other
non-financials also fell with notable Cathy Pacific, Petro-China and
Sinopec were all down around 4%. All the core European Indices attempted
the upside today but by the close all had fallen back into the red
closing down around -0.5%. It really is not surprising that volumes in
the west were so depressed today given the long weekend holidays in the
States.
Both the black and the yellow gold’s were back under pressure today
as both lost ground. Oil gave back much of the short-term midweek rally
falling 3% closing $41.77 having rejected the $40 level earlier in the
week. Gold also saw weekend selling losing $17 today to close $1056 and
in Euro closes this evening below €1000.
Again the money finds its way into the US Dollar with the DXY closing
this evening/week above the psychological par level at 100.06 (+0.25%).
GBP was again a talking point as it approached the $1.50 area. The
Russian Rouble held its ground well today slipping against the USD by
only 0.5%. The Brazilian Real continues to trade heavy closing the day
-3%.

World Relief is PAID BY THE HEADby the US
taxpayer for their work in ‘welcoming communities’ and that they work
closely with businesses to supply them with cheap immigrant labor.

World Relief’s vice president of advocacy and policy, Jenny Yang, also appeared on Hashtag VOA, and said
her organization works with businesses and religious groups around the
country to provide Syrian refugees with jobs and welcoming communities.

World Relief is also reimbursed by the taxpayer through a match program for supplying the volunteers in churches who pick up the refugees at the airport!

“We equip churches to respond tangibly,”
Yang said. “We work with them in picking up a refugee family at the
airport, or providing them with a meal, or even inviting a family [to
join them] for the holidays.”

Then here she is implying that they are saving the Christians, WORLD RELIEF IS NOT SAVING THE CHRISTIANS!
The UNHCR is picking Sunni Muslims for resettlement to America and as a
federal contractor, World Relief must resettle the Muslims or lose
their federal funding (it is about the money!).

The 2015 Berlin World Economic Conference will begin tomorrow. Early
Check In will be tonight. We will be looking at what makes this all tick
and the forecast for when the markets will turn in commodities, phase
transitions, debt, war, and the coming new monetary system among other
topics. This is our 30th Year for a WEC. We apologize that we are
holding only two sessions this year, Europe and USA. These events are
first class and major productions with a huge amount of time in
preparation.

A ton of emails are flooding in asking what to do with gold since it
made new lows after yet another false rally. I appreciate all the people
who have been hurt by the goldbugs. Just remember, what goes up MUST
come down. Even if gold reached the $5,000 level, it may do so for one
nanosecond. Whatever the high it will not rise to such a level and stay
there. We are looking at the collapse of the world monetary system. This
will be a transition trade only.
If gold closes below the 1043 level at year end, you can bet on new
lows next year in 2016. We will most likely see a real surge in the
dollar yet with the Euro collapsing. So pay attention also to the
year-end closing for the Euro. If that is under 10365, the dollar surge
is underway.

The Economic Confidence Model may have pinpointed
the start of the demise of Western Civilization. On September 28, 2015,
Russian President Vladimir Putin and US President Barack Obama had a
90-minute face off at the UN in New York. Putin petitioned Obama for the
US to join Russia in against ISIS and leave Assad in power. The Obama
administration, would not alter its plan to overthrow Assad, which can
only destabilize the region tremendously. Hence, it was on the precise
day of the ECM, September 30, 2015, when Putin began bombing anti-Assad
“rebels” and ISIS. This event appears to be indeed extremely important
moving forward.

COMMENT:
Armstrong-san, in Japan there is a belief that the Japanese government
instigated your case because you warned that the Postal Savings fund
would require government funds to bail it out because they lost the
people’s money trying to support the market. You also said the economy
would decline for 26 years. Many viewed that the government tried to
silence you to support the economy.
There was some press asking how the FSA could send a letter claiming
$10 billion was supposed to be at Republic Bank and then later claiming
it was a mistake. That was the view in Japan. It was retaliation for
your forecast of a 26 year decline.
HSREPLY:
I am aware of that issue. I agree, here you have the agency in charge
of managing the yen claiming it made a decimal point mistake calculating
the yen turning $1 billion into $10. This calculation error sounds nuts
and then it took them 13 days to figure out it was an error? It made no
sense that this was such a mistake that was not corrected until
Republic took the money. I do believe that Safra then just stole all the
money on August 27th assuming $1 billion was pocket change if $10
billion was missing. He sold his bank to HSBC for $10 billion. That was a
time when a $1 billion was a lot of money.
Japan may have caused the bankers to panic. But once Republic stole
the money the crime was committed. After the bank went to the press and
government in the States claiming $1 billion was missing and they “had no idea where it was”,
nobody could then reverse what took place without looking like a total
fool. They counted on US prosecutors being really stupid right down to
Mary Jo White who is now head of the SEC. It is IMPOSSIBLE
for $1 billion to vanish from a bank without a withdrawal slip or wire
transfer. Money cannot vanish like that unless you break into a bank and
take the cash even if they had that much in cash. The prosecutors NEVER asked, how can $1 billion just vanish?
I do not know if the Japanese government intentionally
caused the crisis with a fake mistake or it really was a bureaucratic
mistake. But they had sent a letter to the Federal Reserve even claiming
$10 billion was missing which really did shake everything up. To then
claim – oops, sorry, mistake, really does not sound plausible.
Even at my bail hearing, the judge stated the prosecutor allegations
that I had a billion hidden in Europe somewhere. Nobody ever asked how
could you make $1 billion simply vanish from a bank and nobody knew how.
Then the press just repeated the allegation without asking WHAT?
See: http://www.nbcnews.com/id/23767683#.VlgVdnarTcv

The United Nations projects that over the next 50 years, the population in the industrialized world (US-Europe-Japan) will DECLINE,
not expand. The population is suffering from growing old and the youth
are so burdened with taxes they are not getting married (marriages off
by 50%) and are not having children. The decline in birth rates and the migration of people from the outer regions into the old core is typical.
The UN is now supporting immigration to keep the pension funds alive. They have stated that immigration now “require[s]
comprehensive reassessments of many established policies and
programmes, including those relating to international migration.”

COMMENT:
Mr. Armstrong; I do not want to reveal my sources but your ordeal with
the government and Republic National Bank was linked to the shady
dealings that Safra was involved with in Russia with the blessings of
the U.S. government. Here is an article on the link which predates your
ordeal by three years. Here is the 1996 New York Magazine on the Money Plane.
Here is the Congressional Record concerning the issue.Money Plane Congressional Record, Volume 142 Issue 19 (Tuesday, February 13, 1996)
AnonymousREPLY:
Yes I am aware of the planes full of cash going to Russia organized by
Safra. Clearly there was some sort of approval from Washington to allow
Republic Bank to take the lead in such a venture.

The arrogance of people who try to claim that Pi has nothing to do
with the business cycle is really amazing. They assume that a business
cycle means we have no free will. They are ignorant of the fact that
collectively we display mob or herd behavior. That does not negate you
individual ability to participate with the herd or understand this is
just a herd reaction as in financial panics. Of course we have FREE WILL,
but the means we have the capacity to wise-up and move counter-trend to
the majority. This does not turn everyone into a mindless drone.
Pi is turning up now in various science fields. It os a incredible important discovery that warrants our attention.

If not for the Autumn Statement by the Chancellor George Osborne in
the British Parliament today, I think dealers would have called an
early night ahead of the long weekend in the U.S. Asian equities were
really nothing to write home about, closing mixed Nikkei and HS lower
with Shanghai firmer. In Europe, the DAX and CAC were the star
performers closing up 2.15% and +1.5% on the back of positive corporate
announcements (Metro +6%, LafrargeHolcium +4% and Thomas Cook +10%) all
raising dividends and payouts greater than expected. In the UK, the home
builders surged afters Mr. Osborne’s comments bolstered the
construction and builders interests; Barratt’s, Wimpey, and Persimmon
all gained 5%.

FX initially saw weakness for EUR, GBP and JPY but many recovered
towards the close. The euro spent the majority of the day below the
psychological 106 level, but book-squaring into the close reversed a lot
of those trades. We saw the mirror trade in emerging market currencies
as we saw yesterday with the Rouble and Turkish Lira losing around -0.5%
against the USD. The DXY (US Dollar Index) saw small gains closing
+0.3% higher at 99.85.

EU President Jean-Claude Juncker has warned of the end of the single currency
if EU members resurrect border controls once again. This statement
reflects the internal dissent with Germany over the refugee crisis. It
certainly seems rather insane that Europe just open its doors in this
manner with the inability to truly screen those who enter.

Wednesday, November 25, 2015

What if the government’s goal is to perpetuate itself? What if the
real levers of governmental power are pulled by agents and diplomats and
bureaucrats behind the scenes? What if they stay in power no matter who
is elected president or which political party controls Congress?

What if the frequent public displays of adversity between the
Republicans and the Democrats are just a facade and a charade? What if
both major political parties agree on the transcendental issues of our
day?
What if the leadership of both major political parties believes that
our rights are not natural to our humanity but instead gifts from the
government? What if those leaders believe that the government that gives
gifts to the people can take those gifts back?

What if the leadership of both parties gives only lip service to
Thomas Jefferson’s words in the Declaration of Independence that all
people “are endowed by their Creator with certain unalienable Rights,
(and) among these are Life, Liberty, and the Pursuit of Happiness” and
that the purpose of government is to protect these rights? What if the
leadership of both parties dismisses these ideas as just Jefferson’s
outdated musings? What if Jefferson’s arguments have been enacted into
the federal laws that all in government have sworn to uphold?

What if the leadership of the parties believes that the
constitutional requirement of due process somehow permits mothers to
kill the babies in their wombs out of fear or convenience? What if the
leaders of both parties believe that the president should be able to
kill whomever he wants out of fear because due process is an
inconvenience?

What if President Barack Obama has killed Americans and claimed that
he has done so legally, relying on the convenient arguments of his
attorney general, who falsely told him his killings are consistent with
due process? What if the Constitution requires due process whenever the
government wants someone’s life, liberty or property, whether convenient
or not? What if due process means a fair jury trial, not an ordered
killing?

What if the congressional leadership and most of the membership from
both major political parties believe in perpetual war and perpetual
debt? What if the history of American government in the past 100 years
is proof of this nearly universal belief among the political class?

What if the political class in America believes that war is the
health of the state? What if the leadership of that class wants war so
as to induce the loyalty of the voters, open the pocketbooks of the
taxpayers and cause compliance among the people? What if the political
class uses war to enrich its benefactors? What if the government has
been paying for war by increasing its debt?

What if the political class has been paying for prosperity by
increasing the government’s debt? What if that class has controlled the
cash-creating computers at the Federal Reserve and the free cash the Fed
creates is to bankers and traders what heroin is to addicts? What if
the $18.6 trillion current federal government debt has largely been
caused by borrowing to pay for war and false prosperity? What if 20
cents of every tax dollar collected by the feds today is spent on
interest payments for the government’s debt?

What if American taxpayers are still paying interest on debts
incurred by Woodrow Wilson, FDR, JFK, LBJ, Ronald Reagan and every
modern president?

What if the silent damage that the artificial creation of cash causes
has been manifested not in price inflation but in equity and savings
deflation? What if the manifestation of equity deflation is that too
much of everything we own secures too much debt? What if the folks at
the Fed who create the cash have kept interest rates so low that there
is little incentive to save?

What if we all own a smaller percentage of what we think we own
because the value of what we own has decreased as the debt on what we
own has increased? What if the banks have borrowed the money that they
lend? What if they can’t pay it back? What if the stock market is
soaring on borrowed money? What if mansions and shopping malls are
popping up but they secure more debt than they are worth? What happens
when the plug is pulled on this temporary artifice when those debts come
due?

What if the government demands transparency from all of us but
declines to be transparent to us? What if the government fosters the
make-believe notion that it exists to serve us? What if the government
denies that it works for us and thinks we work for it? What if it has
access to all of our communications, bank accounts, health and legal
records, and monthly utility and credit card bills? What if the
government knows more about us than we know about it?

What if the government stays in power by bribery? What if it bribes
the states with grants of cash, the rich with bailouts, the middle class
with tax cuts and the poor with welfare? What if the courts have
approved this bribery?

What if, on Thanksgiving Day, our gratitude is not to the government
that assails our freedoms but to God, who gave us our freedoms? What if,
on Thanksgiving Day, our gratitude is for life, liberty and the pursuit
of happiness? What if we possess them despite the government?

What if, on Thanksgiving Day, we should be most grateful that we are
free creatures made in God’s image and likeness? What if we are free to
reject the government?

From Michael Hudson: What French President Hollande Would Have Liked To Have Said

“I apologize to President Obama for not realizing that ISIS’s attacks
on France were expressions by the ‘legitimate moderate opposition’.” I
appreciate President Obama making it clear that ISIS is America’s
Foreign Legion just conducting moderate opposition in their own moderate
manner.”

We will be sending out over the next two
days ahead of the Berlin Conference the Special Year-end Report covering
Currencies, Metals, Energy, Wheat, and major Share Markets with the
Year-end Reversals to watch as we head into 2016.

(Note: This is ONLY available for those attending the World Economic Conference)

Currencies included:

A$, C$. British, Japan, China, India, Sweden, Euro, and the Swiss/Dollar as well as Euro/Swiss.

The Republican Party tried its best to
destroy Donald Trump. Like the French Royalty, they learned nothing and
have merely tried to retain power by blocking out the rising storm of
the people they consider the Great Unwashed. The Democrats are no
better. They have the audacity to push Hillary in our face and ignore
that the Clintons cut the chains that bound the bankers and then served
them students on a golden platter while denying their right to declare
bankruptcy on bankers.

The Republicans have been unable to crush Trump, yet they still do
not get the message nor does the mainstream press. Trump has tapped into
the anti-politician sentiment that has been rising and both the
Republicans and Democrats will most likely explode like an over inflated
balloon. Both are ignore the people; they assume that this is a passing
phase and that they can get back to screwing the public as usual.
Party politics is dying because they have sold their soul to the
investment bankers and K Street. They attack anyone who dares to hold
them to their promises and they wage outright against any organization
who dares to object like the Tea Party, Heritage Action for America,
Club For Growth, the Madison Project, etc. They have outright
blackballed any press or political consultant who works for outsiders
and does not preach the party’s mantra.
We are witnessing the end of party politics, and yet they do not
understand that they are in the final death throe stage. They assume the
people will get over this period and fail to comprehend that a new
generation is coming into voting power whom has been severely deprived
of their rights, liberties, and pursuit of happiness, thanks to
politicians’ incessant greed of selling themselves to the highest bidder
at the expense of the people.They use every excuse to grab more and more power. President Hollande of
France now wants to amend the Constitution declaring — “France is at
war.” Do you permanently change a Constitution for a temporary issue?
Hollande announced a review of the Constitution and a legislative and
security arsenal to strengthen the fight against the Islamic state and
their continued air strikes in Syria. Hollande called on Monday to amend
the Constitution to fight potential terrorists at home and for an
aggressive effort to “eradicate” the Islamic State abroad. Nearly 300
searches were conducted since Sunday that are not related to the
investigation into Friday’s attacks, but concern the radical Islamist
movement. However, these measures are designed to also boost his
popularity, given that he would have lost had he stood for election
before the attacks on Pen.

QUESTION:
Thank’s your down to earth’ blog updates which even ‘not economist’
will understand. My question is from US dept ceiling limits. Before this
month,November, in the news was quite a lot of from this issue but
after ‘D-day’ 03.11 or 05.11. Nothing happened… Or I can’t find anything
from the search engine aka corporate media or the alternative news. May
I ask you what’s going on? What was the result for the Us dept limit?
It makes me wondering why not even alternative news sites asking the
same question?
Thanks Martin in advantage for your help.
Kind regards,
MHANSWER: That one does seemed to be buried deep. Effectively, Paul Ryan
took the oath of office on October 29th after John Boehner said he
would resign from Congress on September 25th as perhaps the most
disliked speaker in many decades. The very next day, October 30th, Obama
was handed with congressional passage of legislation a new debt ceiling
that lifted the threat of a default on government debt. This pushed off
that risk until after he is gone – 2017. This essentially relaxed
the strict spending caps through September 2017.
The Senate voted 64-35 to approve the measure, and this was Boehner’s
parting act. It was Boehner who negotiated the deal over the past few
weeks which was timed with Ryan taking office. Boehner was always the
compromise king. The White House and congressional leaders carved out a
deal. Obama said he would sign the bill into law as soon as he received
it.
The two-year budget provision provides now imposes new top-line
spending levels for Congress covering the fiscal year that began October
1st, 2015 and the one starting October 1st, 2016. This relaxes
the budget caps which allows for an additional $80 billion in spending
on military and domestic programs over the two years. That won the
Republicans.
The system is broken. These spending ceilings no longer function
since they are routinely increased each and every time. So where is the
restraint on spending? Clearly, politicians could not manage anything
for they never reform, remain within a budget, and when they cannot do
their job, they raise taxes and increase the spending limits. Nobody
could run a business or your household budget in such a manner.

COMMENT: Dear Martin,
From reading your blog and other news I can conclude that the low
interest rate has failed to increase the private business activities to
the level that normally would require an increase in interest rates. The
arguments now are to increase interest rates to save pensions funds and
to be able to reduce interest rates if we get another financial crises.
To me it look like the system is totally out of balance and have not worked like the normal capitalistic system since 2006.
Regards
Fk

REPLY: Correct. Governments have embraced Marx & Keynes because they argued that government had the RIGHT and the CAPACITY
to manipulate society by the economy creating Utopia eliminating the
business cycle. They create economic disasters, blame others, and then
start wars to get out the mess. It is never our interests at stake –
only their’s. The Free Market always wins and this age
of Socialism where they decide how to spend your money (usually on
themselves), is coming to an abrupt end just as did communism. This
balancing act has been a disaster because they assumed they had the
power to control something they have no clue about how it even
functions. Sorry but Smith and Schumpeter win.

Ironically, those who lived in communist states are better equipped
to survive for they simply expect nothing from government. In Europe and
the USA, people stupidly believe government is there with a safety net
to help them. They keep moving the age for retirement. They keep raising
taxes which proves
they are incapable of any fiscal management since to raise taxes means
you failed to do what you promised. Indeed, like Will Rogers, one need
not joke about government and politicians, all you have to do is state
the facts.

Yet
we are the fools who elect people with no experience and expect
actually a good job. Look at Hillary. Many will vote for her just
because she is a woman – nothing else just as some voted for Obama
because he was black. Or a Bush because he had the “name”. We truly
deserve what we get when we elect incompetent people that change our
future who are corrupt, unethical, and unprincipled. We are too stupid
to realize we compel history to repeat and we dig our own graves. We
most certainly get what we deserve.

There is something not quite right about this entire incident of
Turkey shooting down the Russian fighter jet and then attacking the
rescue helicopter. Sorry, but Turkey is way out of line when they KNEW
that Russia had no intention of attacking Turkey. A argument that
Turkey will defend its borders implies there is a threat to Turkey, not
simply a drive-by. There was plainly no reason for Turkey to take such
action. They assume they are a NATO member and thus Russia cannot fire
back without starting World War III. This is a totally reckless incident
and unimaginable conduct of Turkey under these conditions when they
clearly knew they were NOT under attack from Russia no less a single fighter jet.
Even if it were true that the Russian jet strayed into Turkish airspace, at best there should have been a scramble of jets to “protect”
its airspace without provoking war. This has been standard operational
procedures between USA and Russia for years. It is not some coincidence
that a Turkish film crew captured the incident. They were most likely
tipped off to be at the right place at the right time.
This entire incident raises serious questions if the economic
conditions in Turkey, being on the brink of a economic meltdown, did not
deliberately try to provoke war to distract the world from its debt crisis. Turkey is being watched for many see it as the FIRST domino to fall in the Emerging Market Debt Crisis. This raises many, many serious questions about the motive behind this entire incident.
What is truly astonishing is that in a letter to the U.N. Security
Council, Turkey openly stated that it had shot down the jet while in
Turkish air space. It then even admits it also shot a second plane on a
rescue mission – the helicopter as if that was some major threat. These
actions make it appear that Turkey is praying for war because its
government could collapse with its debt.
Putin rightfully said “We will never tolerate such crimes like the one committed today.”What
Turkey did was unimaginable and the entire incident appears to create a
diversion from its pending economic meltdown. There have been major
demonstrations against government corruption in Turkey for the past few
years.
NATO has called for Turkey and Russia to show restraint, the alliance’s Secretary-General Jens Stoltenberg said, “we stand in solidarity with Turkey and support the territorial integrity of our NATO ally”.
This is reminiscent of precisely how World War I began because of
treaties. Then Obama also said similar confrontations could be avoided
if Russia stopped attacking “moderate”Syrian rebels who are battling forces loyal to the government of President Bashar al-Assad.
Obama is way out of line here for the US is totally responsible for
ISIS since they funded these people to try to overthrow Assad in Syria.
All of this for a pipeline to compete with Russia to get gas from Saudi
Arabia to Europe. World leaders are full of shit and pretend this is
about a dictator when in fact the overthrow of Syria was precisely what
ISIS wanted. This mess lies squarely in the hands of the Obama
Administration and then to have the audacity to pretend Turkey had a
right to defend its airspace when not being attacked is just too much.
These people NEED war to distract everyone from the
Sovereign Debt Crisis that is causing the collapse of governments for a
system of borrowing year after year with ABSOLUTELY no intention of ever paying any debt off.
The Japanese attacked Pearl Harbor. That was a viable attack. One
plane flying close to the border and claiming it was 1km in your
airspace giving you the right to shoot down a Russian plane is pure
insanity. The fact that a film crew was there makes this seem to have
been a deliberate act to cover up the economic meltdown of Turkey.

The morning session in Asia was rather dull but all recovered in
the afternoon into positive territory with the exception being Hang Seng
(which was still down -0.3%). Europe drifted into the negative shortly
after the open as news was still focused on the nervous Belgium
shut-down. All trading was dull and in thin conditions then the news
that Turkey had shot down a Russian fighter jet and equity indices were
hit as were their currencies. Upon the news both the MICEX (Moscow
Exchange) and ISE (Istanbul Exchange) dropped 2% both lost more ground
eventually closing -3.5% and -4.5% respectively. The Russian Rouble made
all of its losses (2% at one stage) back to close unchanged on the day.
The same could not be said for the Turkish Lira which closed down 1% on
the day. US Indices opened lower but recovered all of their losses to
close with small gains across the board.
Energy was the other main benefactor of the midday news with WTI and
Brent both closing up almost 3% on the day. Gold, Silver and Copper all
gained on todays news recording gains of between 0.8% and 1.8%.
The Bond markets also gained on the uncertainty with US Treasuries,
Bunds and peripheries all closing strong. Interestingly, the curves for
all markets were well behaved with even the front-end being pulled
along. The 30yr US closed on the 3% level again with 2’s, 5’s and 10’s
all gaining 2BP. The longer term trend continues to show the flattening
theme for the US curve.
Mr Carney (BoE Governor) said today that he did not know when British
interest rates should start to rise and Andy Haldane (BoE Chief
Economist) sounded even more extreme when he said he sees more downside
risks for growth. GBP Sterling/Cable lost 0.4% today and was last seen
at 1.5070